Market: Wheat, $ZW_f, ZWU13
Buy or Sell?: Wheat has suffered at the hand of bearish corn fundamentals, but the chart is looking supportive.
Range: The market has been trapped in a defined channel; prices are currently sitting on support and could find footing to bring prices back to resistance near $675.
A higher dollar and the corn supply glut are pressuring wheat
Despite differing crop cycles and fundamentals, wheat prices have a tendency to follow corn in times of an entrenched trend. The massive corn crop planted this season has kept wheat out of favor. However, ultimately the market will have to acknowledge that supplies of wheat aren’t nearly as ample as corn. We can’t think of a better time for that to come into play than with the market sitting at technical support. Similarly, the RSI in wheat is near 30; in previous occasions (early April and early July) prices made a recovery.
Futures, Options, Integrity